Contractor and home repair scams — the most common local fraud
This article is for educational purposes only and does not constitute medical, legal, or financial advice. Every family situation is different, and you should consult with appropriate professionals about your specific circumstances.
There's a man at your mother's door. He has a truck, a clipboard, and genuine-seeming concern. He's noticed that her roof looks worn—he was just finishing work down the street and thought he should mention it while he's in the neighborhood. He's offering her a price that seems reasonable, maybe even a little low. He says he can start tomorrow. He prefers cash or a check upfront, of course, because that's how contractors work. Before you ask yourself what your mother is actually seeing, before you wonder if she's about to say yes, you need to know that this scenario happens every single day across the country. A trusted adult who's been in the same house for thirty years is about to write a check to someone she's never met, for work that might not even need to be done.
Contractor scams targeting older adults are the most common form of fraud in many communities. More common than online scams. More common than phone fraud. More common than anything else. They're local, they're personal, and they work with shocking regularity. The average loss in a contractor scam is higher than in many other frauds too—sometimes tens of thousands of dollars,because the scammer is working with the one asset older people are most likely to have: a home with equity. Unlike online scams that might net a few hundred or a few thousand, a contractor scam can deplete a lifetime of savings.
What makes contractor fraud especially devastating is that it doesn't always look like fraud from the inside. Your mother might hire someone to fix the roof, and the work might actually get done,badly, but done. She gets a bill for twelve thousand dollars instead of the five thousand estimated. Or the work is never finished. Or the work causes new problems. Or nothing happens, no one shows up after the check clears, and the contractor is gone. Even when something concrete occurs, it's hard to prove fraud because the line between "bad work" and "deliberately predatory work" is blurry from a legal standpoint. Your mother is left holding the loss.
Understanding the Basics
Home repair and contractor scams come in a few overlapping versions, but they all use similar psychological tricks. The most basic version is the bait-and-switch. The scammer offers an attractive price for a project,a new roof, siding replacement, foundation work, driveway resurfacing. Your parent accepts. The scammer starts the job, and then suddenly discovers major hidden problems. The foundation is worse than expected. There's termite damage. The roof decking is rotten. Now the original five-thousand-dollar job requires forty thousand in additional work to be done safely. The scammer presents this as an emergency. If your parent doesn't authorize the work immediately, the house will be damaged, insurance won't cover it, the problem will spread. The pressure is real, even if the problem isn't.
Another version is the disappearing contractor. Your parent hires someone, pays a deposit or full payment, and the person either never shows up or stops showing up partway through the job. By then, the cash is gone and the contractor has moved to the next neighborhood, the next town, the next state. Sometimes the contractor provided a legitimate business address or phone number, which turns out to be borrowed or fake. Sometimes the contractor collected cash only, leaving no paper trail.
A third version involves genuinely poor work disguised as appropriate work. The scammer completes the job, bills for premium quality work, and your parent pays. Only later does your parent realize the work was substandard,the materials were cheap, the installation was sloppy, the work doesn't last. By then, the contractor is gone and claiming the work was fine when they left it. Proving negligence in construction is a civil matter and can cost more in legal fees than the original job.
The most predatory version involves financing. The scammer offers to arrange financing so your parent doesn't need to pay upfront. This is where predatory lending enters the picture. The scammer has a relationship with a lender who provides high-interest, high-fee loans specifically for home repair. Your parent signs papers they don't fully understand. Not only does the work turn out to be poor, but your parent is now on the hook for a ten-thousand-dollar loan at eighteen percent interest to pay for a three-thousand-dollar job. Breaking free from the loan is difficult. The lender often doesn't care if the work was terrible because the lender's only interest is the interest.
What makes these scams effective is that they exploit trust and urgency. A contractor who shows up at your parent's door is physically present. That presence creates a sense of immediacy and authority. Roofing problems, foundation issues, siding damage,these feel like emergencies. Your parent might not feel equipped to evaluate whether the proposed work is actually necessary or whether the price is fair. Contractors use technical language, point out damage your parent wouldn't have noticed, and explain why action is required immediately. The combination is powerful.
Scammers also target older adults because they understand a particular psychology. Older homeowners have maintained their homes for decades. They want to keep their homes in good condition. They have the resources to pay. They're less likely to shop around or ask for references because they come from a time when a handshake and a reputation meant something. They're more likely to trust someone who shows up in person rather than to check their credentials thoroughly. And if something goes wrong, they're less likely to pursue legal action because they find the process exhausting.
Your Parent's Specific Situation
The question you need to answer is whether your parent has already paid someone for work, and if so, whether that work is actually needed and whether it was done correctly. If your parent has signed a contract with a contractor, you should review the contract carefully. Is the scope of work clearly defined? Are the materials specified? Is the price firm, or are there conditions that allow the price to increase? Is there a timeline? Is there a warranty? Is the contractor licensed and insured? Does the contract specify what happens if work is damaged or doesn't meet standards?
A legitimate contractor will provide a written contract with clear terms. They'll provide an estimate before beginning work, and they'll provide change orders if additional work becomes necessary,not vague verbal discussions about possible additional costs. They'll provide proof of licensing and insurance. They'll be willing to provide references. They'll have a physical business address, not just a cell phone and a truck. If your parent hired someone who doesn't meet these criteria, your parent has already taken a risk. It's not necessarily too late to address it, but it matters what stage the work is in.
If your parent has paid someone and the work is incomplete or poor, your first question is whether your parent paid in full or in stages. If there's money still owed to the contractor, you have use. Don't pay the final payment until you're certain the work is complete and meets the contract terms. Have the work inspected by an independent contractor if necessary. Get the opinion of someone who knows the trade, not just someone who likes your parent.
If your parent has already paid in full and the work is inadequate, you need to determine whether the contractor violated the contract or provided a service that's simply not what your parent wanted. This is the difference between legal fraud and buyer's remorse. If the contract specified materials and materials were substituted, if the contract specified a timeline and the work is incomplete, if the work doesn't meet building codes or industry standards, you might have a legal claim. If the contract said the contractor would use X materials and X materials were used, but your parent simply doesn't like the result, your legal options are limited.
You also need to know whether your parent has been pressured to hire a contractor at all. Has someone shown up at the door repeatedly? Has your parent received multiple bids for work they didn't ask for? Has someone given your parent a dire assessment of a problem without being asked? These are sales tactics that cross into pressure and manipulation. A legitimate need for repair work doesn't usually announce itself through an unsolicited visit.
If your parent is considering hiring a contractor for work they genuinely need, you can help them avoid scams by participating in the hiring process. Ask how the contractor heard about your parent. Ask for multiple bids from different contractors. Ask for references and actually call those references. Check licensing with your state's licensing board. Ask for proof of insurance and verify it with the insurer. Read the full contract before your parent signs it. Never let your parent pay upfront without a clear contract and a contingency that protects your parent if the work isn't done.
Taking Next Steps
If your parent has been scammed by a contractor, your options depend on whether there's a paper trail and where the money went. If your parent paid by check, you have a record. If your parent paid in cash, recovery is harder. If your parent financed the work through a predatory loan, you might have claims against both the contractor and the lender.
Contact your state's licensing board or attorney general's office to report the contractor. File a formal complaint. This creates a record and might result in the contractor losing their license or facing investigation. Other people might report the same contractor, creating a pattern that leads to enforcement action.
Consult with an attorney who handles consumer protection cases. Depending on the amount of money involved and the nature of the fraud, you might be able to pursue a civil claim in small claims court or regular court. An attorney can help you determine whether you have a legitimate claim and what the realistic outcome might be.
Document everything. Get photographs of the completed work or the incomplete work. Get independent estimates for what proper work would cost. Gather all communications with the contractor. Preserve the contract and any communications about the project. Get statements from your parent about what was promised and what was delivered. This documentation is what you'll need if you pursue a claim.
Most importantly, help your parent prevent this from happening again. The rule should be simple: no home repair decision without getting multiple bids from licensed, insured contractors who provide written contracts. No payment before work is complete. No contractor chosen because they showed up at the door. Legitimate contractors have a reputation, a history, and verifiable credentials. They're not in the business of door-knocking neighborhoods to find work. If a contractor comes to your parent, your parent should assume it's a sales tactic and should treat it with skepticism.
How To Help Your Elders is an educational resource. We do not provide medical, legal, or financial advice. The information in this article is general in nature and may not apply to your specific situation. If you are concerned about a loved one's safety or financial wellbeing, consult with an elder law attorney or contact your local Area Agency on Aging for guidance and support.